These Stocks Will Suffer Under a Trump Presidency

markets valuationsAccording to a new report from Royal Bank of Canada (TSX:RY)(NYSE:RY), Canadian utility, telecom, and real estate stocks will face mounting headwinds under a Trump presidency.

Their report, titled “The Corner of Bay and Trump,” highlights how higher U.S. fiscal spending combined with tax cuts is likely to lead to higher U.S. inflation rates.

Why would higher U.S. inflation rates be a threat to the Canadian economy?

The loonie is set to fall

For years, the Canadian dollar has had a strong negative correlation with crude prices.  Read More…

This article has 7 Comments

  1. Chandra S

    Trump is already looking like an economic disaster with his fiscally irresponsible cabinet picks.

    I am just hoping we don't have a Bush-like disaster now that republicans are back in charge. Recall, historically republicans are the worst of the two parties when it comes to debt and jobs.

  2. Blake

    What scares me most about President-elect is that he has no interest in how government works. None at all. I haven't felt this nervous since Bush, Jr.

  3. Darell T.

    2008 meets 2017.

  4. Shay W.

    I too have predicted the loonie is going to fall some more. Oil is going to be taking more abuse this new year.

  5. Eliseo M

    On the bright side Trump will reinstate oil pipeline between our two countries. Not good for the environment but good for us investors in crude oil.

  6. Nate S

    No way BoC cuts rates even more. Way too much in 2016.

  7. Omar Gorton

    There will be more than just a few stocks that suffer. More like industries.

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